Crypto Sales Outpace self-custody wallets
2022 continues to be a challenging year for many Crypto Currencies seeing a massive reduction of close to $US2 Trillion dollars exiting the sector as retail investors become disgruntled at the Terra (Luna) Network collapse and the latest FTX scandal that continues to cause widespread carnage.
Although much of the sector has been impacted the figures are still quite healthy and we're probably looking at more of a pre COVID price correction. If you recall March 2020 saw one of the largest mass exits and sell offs in the sector causing Bitcoin to crumble below $US5000 . Although the price drop was short lived giving way to one of the largest price rallies there were still many naysayers.
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Bitcoin still holding steady
As of time of writing Bitcoin is trading for just over $US17,000 which is only $US3000 less than it's $US20,000 price point when Terra (Luna) Collapsed. FTX bankruptcy has only provided a $US3000 discount on Bitcoin.
And as previously reported in Fidelity Crypto Investment goes LIVE There are more mainstream investment companies coming to offer Crypto Currencies. Although they aren't offering much diversity their top picks are Bitcoin and Ethereum which indicates there is a strong enough market to continue to offer the token as an investment opportunity.
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Sales outpace Self-custody wallets
We recently saw a large portion of Bitcoin Whales move their Bitcoin from exchanges to self-custody wallets but what is also occurring is a large portion of retail investors dumping Bitcoin . No doubt a large portion of these retail investors purchased Bitcoin at much higher price points than current price points. Although mainstream media is reporting it as people turning their back on Crypto there are still large cohorts picking up the token.
As raised yesterday, the thing that keeps a Crypto alive is a strong community backing which this is something Bitcoin has had since day dot and as we know Bitcoin has risen and fallen a number of times and is still trading quite high in comparison to it's life cycle.
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Bitcoin modelling still predicted to increase
Despite the current evacuation and low market confidence the economic modelling indicates a positive outlook for Bitcoin. At current there are around over 84 million Crypto Wallets across the world. The outlook indicates that there will be a 24% compounding increase in wallets annually and while there is movement on the out now this information is useful to understand future trends. It is also not uncommon or the first time it has occurred with similar behaviours exhibited in 2020 at the commencement of COVID19.
There was also similar movement in 2017-18 with one of the first Crypto winters however, what makes this time differently is the increase of institutional brokers now offering market exposure to retail and corporate investors.
So the question on everyone's lips now becomes, WEN $US100,000 Bitcoin?
image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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